Legal status of the property
The analysis starts from planning and building titles, subsequent variations, amnesties and the current lawful status of the asset. The cadastral record serves a different function and cannot substitute planning-law verification.
Cadastral and planning compliance
Cadastral conformity and planning legality are distinct concepts. A transaction may present issues under one system even where the other appears regular.
Use, habitability and marketability
Intended use, habitability requirements and the possibility of lawful use may materially affect value, financing and the purchaser’s intended operation.
From technical finding to contractual allocation
The purpose of due diligence is not merely to list irregularities but to determine whether they can be cured, at what cost and within what timeframe, and which party should bear the resulting risk.
Representations, conditions and remedies
Material findings should be reflected in representations and warranties, conditions precedent, price adjustments, escrow arrangements or termination rights, depending on the transaction.
An integrated method
Legal due diligence works best when lawyers and technical advisers coordinate around the economic purpose of the acquisition and the buyer’s intended use of the asset.